Three top banks accused by investor of trying to rig silver prices

Earlier this year, Barclays Bank was fined 44m dollars by UK regulators after one of its traders was discovered attempting to fix the price of gold.

Deutsche Bank and HSBC have not commented on the filing, while Bank of Nova Scotia told Bloomberg news agency it would vigorously defend itself.

The lawsuit follows similar filings in the gold price-fixing market.

Earlier this year, Barclays Bank was fined 44m dollars by UK regulators after one of its traders was discovered attempting to fix the price of gold.

Investor Scott Nicholson from Washington said in the filing against the three banks for price-fixing: The extreme level of secrecy creates an environment that is ripe for manipulation.

Defendants have a strong financial incentive to establish positions in both physical silver and silver derivatives prior to the public release of silver fixing results, allowing them to reap large, illegitimate profits.”

He is hoping other investors will come forward to launch a class-action lawsuit.

Last September, the US Commodity Futures Trading Commission said it had found no evidence of wrongdoing during a five-year investigation into the silver market.

Previous investigations by the US regulator also found no evidence of malpractice.

This was written by Admin. Posted on Tuesday, July 29, 2014, at 8:41 am. Filed under Our Blog. Tagged Gold prices. Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.